Erste Group Bank Weighs in on Caterpillar FY2027 Earnings

Key Points

• Erste Group Bank raised Caterpillar’s FY2027 EPS forecast to $32.16 from $31.18, though it maintained a “Hold” rating. The estimate is above the current full-year consensus of $27.14.
• Caterpillar reported a strong latest quarter, with EPS of $8.17 beating estimates by $1.95 and revenue rising 23.7% year over year to $20.54 billion.
• The stock carries a “Moderate Buy” consensus rating and a $995.52 average price target, but trades at a relatively high P/E of 34.43. Caterpillar also increased its quarterly dividend 8% to $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Free Report) - Erste Group Bank upped their FY2027 earnings per share (EPS) estimates for shares of Caterpillar in a research note issued to investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now forecasts that the industrial products company will earn $32.16 per share for the year, up from their prior forecast of $31.18. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.14 per share.

CAT has been the subject of several other research reports. Truist Financial set a $980.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lifted their price objective on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. DA Davidson upped their target price on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. UBS Group raised their price target on Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Finally, Oppenheimer restated an "outperform" rating and issued a $1,118.00 price target on shares of Caterpillar in a research report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Price Performance

CAT stock opened at $800.11 on Monday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $367.79 billion, a P/E ratio of 34.43, a PEG ratio of 1.40 and a beta of 1.60. The business has a 50 day simple moving average of $893.92 and a 200-day simple moving average of $837.81. Caterpillar has a twelve month low of $410.52 and a twelve month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter last year, the business posted $4.72 EPS. The firm's quarterly revenue was up 23.7% compared to the same quarter last year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Stonebridge Financial Group LLC raised its position in Caterpillar by 0.7% in the second quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock valued at $1,741,000 after purchasing an additional 11 shares during the period. Inspirion Wealth Advisors LLC boosted its position in Caterpillar by 1.2% in the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock valued at $936,000 after buying an additional 11 shares during the last quarter. Bell Bank grew its stake in shares of Caterpillar by 0.6% during the second quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock valued at $1,986,000 after acquiring an additional 11 shares in the last quarter. Cornerstone Advisory LLC increased its position in shares of Caterpillar by 0.7% during the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock worth $1,288,000 after acquiring an additional 12 shares during the last quarter. Finally, Advisory Resource Group lifted its stake in shares of Caterpillar by 0.8% in the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock worth $935,000 after acquiring an additional 13 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were paid a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date was Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is 28.06%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s Construction Industries segment generated 35% revenue growth in the second quarter, supported by stronger demand, higher sales volumes and pricing. Digital technology and connected-equipment services could provide additional long-term growth opportunities. CAT's Construction Revenues Up 35% in Q2: Can It Maintain This Pace?
• Positive Sentiment: Analysts point to favorable earnings-estimate revisions and recent price strength as potential catalysts. Caterpillar’s latest quarterly results also showed substantial year-over-year revenue and earnings growth, with results exceeding consensus expectations. Why Caterpillar (CAT) Might be Well Poised for a Surge
• Positive Sentiment: The company raised its quarterly dividend 8% to $1.63 per share and has now increased its annual dividend for 32 consecutive years, reinforcing Caterpillar’s appeal as an income-growth stock. However, the benefit is partly offset by the stock’s high price and consequently low yield. Caterpillar’s Dividend Case Is Stronger in 2026, But the Yield Is Holding It Back
• Neutral Sentiment: CEO Joe Creed is scheduled to participate in a Wells Fargo investor discussion on September 10. The event could provide updates on demand, dealer inventories and guidance, but it is not an immediate earnings catalyst. Caterpillar CEO Joe Creed to Participate in Virtual Headquarters Visit with Wells Fargo
• Negative Sentiment: One analysis questions whether construction demand is being driven by durable end-market activity or dealer-channel ordering. That uncertainty raises concerns about a possible slowdown or inventory adjustment after the recent surge. Is Caterpillar Stock Relying on an Artificial Demand Story?
• Negative Sentiment: At a valuation above 34 times earnings, Caterpillar leaves less room for disappointment. Investors are also cautious that its data-center-related exposure could face political scrutiny, while the dividend yield remains limited at the current valuation.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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